House committee approves bill allowing nonprofit agricultural groups to offer self-funded health plans with amendments

A House committee on an agricultural health plan bill approved House Bill 477 after extensive debate and several amendments, advancing a proposal that would let nonprofit agricultural organizations offer self‑funded health benefit plans to their members.

Sponsor Representative Chris Faulkner told the committee the bill responds to rising health-care costs facing farmers and small business owners and modeled elements on plans in other states. "These health plans have the potential to save 30 to 60% on the cost of health care coverage," Faulkner said, and he said the bill is ‘‘by far the most comprehensive’’ of similar proposals he reviewed.

The bill’s sponsor and committee members discussed several amendments during the session. Supporters said the measure would expand affordable coverage options for farmers; critics warned that too much regulation could limit the plan’s flexibility. Representative Faulkner repeatedly cautioned that adding statutory requirements risks reducing the program’s ability to offer lower‑cost options over time.

Key changes and votes

- Licensing: An amendment (u‑1) requiring that the policy be sold by an insurance producer licensed to sell accident and health insurance in the state was offered by Representative Hogue Jones and approved by the committee on a voice vote. Representative Hogue Jones described the change as a clarification and a friendly amendment.

- Annual reporting: A proposal requiring the nonprofit agricultural organization to file an annual report with the Department of Insurance listing the number of covered individuals (identified in committee papers as 63‑1) was contested. Representative Faulkner said he did not have the amendment and opposed adding the disclosure to law for self‑funded plans. The…